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Ohio — Medical Marijuana Cultivator Bond

For Ohio cultivators, the Division's financial-responsibility rule distinguishes Level I from Level II: the initial bond or escrow amounts are $750,000 and $75,000 respectively. Match your actual license level and any Division-approved adjustment. The bond is one part of the certificate-of-operation requirements, not permission to start growing.

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Recorded state
Ohio
Bond type
Cannabis / Marijuana Bond
Category
Business operations & taxes

What this bond does

Provide the Division of Cannabis Control with the cultivator's required financial security for failure to meet the chapter's mandates, using the actual licensed business and correct cultivation level.

Who needs it
Medical marijuana cultivator licensees preparing for certificate-of-operation issuance or renewal. Identify the actual Level I or Level II license, business entity and premises rather than using a dispensary or testing-laboratory requirement.
Who it protects
Rule 1301:18-3-08 makes the security payable to the Division if the licensee fails to fulfill the chapter's mandates. It requires an Ohio-authorized corporate surety and identifies the licensee as principal, including its business name and Division license number.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Details for cultivation level and the operating certificate

The rule requires both commercial general liability insurance from an Ohio-authorized insurer and a bond or qualifying escrow with an Ohio-chartered financial institution. The initial security amount is $750,000 for Level I cultivation and $75,000 for Level II. The smaller figure is not an alternative a Level I cultivator can select without the Division's applicable decision.

A reduction requires a petition and the Division's determination. After one qualifying calendar year of uninterrupted compliant operation, the listed Level I and Level II reductions are $250,000 and $25,000 in amount, not replacement minimums of those amounts. The rule provides for further reduction petitions after two consecutive qualifying calendar years and a termination petition after three. None happens automatically with an anniversary.

The bond cannot be canceled without the Division's prior written authorization. If it is canceled, or an escrow is released, replacement financial-responsibility evidence is due by the effective cancellation or release date. Match the licensee's legal name, Division license number, surety qualification and actual approved coverage rather than importing another State's notice period.

The cultivator rule generally prohibits authorized activity before the operating certificate, unless the Division authorizes otherwise. It ties the certificate to the designated entity, owners and premises and provides a twelve-month certificate process following a provisional license; that is not a stated bond term. Cultivator authority concerns cultivation and permitted transfers to licensed businesses or laboratories, not retail sales to patients.

Sources

Have these ready

  1. Identify the actual cultivator level, legal licensee, Division license number and licensed premises.
  2. Obtain the current financial-responsibility request and any written Division reduction or termination determination.
  3. Match the required bond sum and Ohio-authorized corporate surety with the licensee as principal.
  4. Coordinate the separate liability-insurance evidence and certificate-of-operation requirements.
  5. Confirm execution, filing and uninterrupted replacement coverage; obtain prior written Division authorization for cancellation.

Questions about this bond

Can a Level I cultivator select the $75,000 amount?

That is the initial Level II figure. The rule specifies $750,000 for Level I and allows petitions for qualifying adjustments. Match your actual license level and the Division's decision rather than choosing between the two figures.

Does operating for three years automatically end the bond?

No. The rule provides a termination petition after three qualifying consecutive calendar years, subject to the Division's determination. Cancellation still requires prior written Division authorization, and replacement evidence is due by the effective cancellation date when required.

What follows Purchase Now?

Propeller's Ohio medical marijuana cultivator application opens in a new tab. Match the licensee, license number, cultivation level, premises, Division-accepted condition, required sum, dates and execution. Submit the issued bond and other required evidence through the Division's process; payment does not issue an operating certificate or authorize a new activity.

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